Gulf Economists Are Giving Up On The Dollar, Encouraging Move To Gold

There's been talk for years of the GCC getting rid of its dollar-weighted currency. Now economists are proposing an simpler method: Just get rid of the dollars.

Dubai International Financial Centre Authority economists released a report yesterday calling for local countries to build gold reserves, according to The National.

The report said the yuan and the euro were not viable alternate reserves currencies.

Despite a high interest in gold (see: gold dispensing ATM's), GCC states maintain less than 5 percent of their total reserves in gold. Compared to the ECB, which holds 25 percent of reserves in gold, that leaves a lot of room for growth.